This Commissions Guide article relates to Adelaide Bank Commercial loans.
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the lender. If you believe anything is missing or inaccurate, please contact us.
Contents:
Commission Rates
| ex GST | inc GST |
Upfront | 0.6% | 0.66% |
Trail | 0.25% | 0.275% |
Upfront Commission
Policies effective from 17th January 2019
Upfront commission for new Adelaide Bank loans is calculated based on the drawn amount less any offset balance as at the end of the month the loan settled, subject to a minimum payment of $400.
For credit increases to existing facilities commission payment will be a flat fee of $250.
The change in Upfront Commission and Variation Commission does not apply to products or credit increases to existing products contracted on or after 17th January 2019.
Trail Commission
Trail is not payable whilst an account remains in default for 60 days or more. Any Trail Fee not paid pursuant to this clause will not be payable to the broker after the account ceases to be in arrears.
Clawbacks
There is no clawback on the broker because the lender charges the borrower a Deferred Establishment Fee. This fee is calculated at 1.50% of the contracted loan amount and is payable if the borrower pays out the loan within 48 Months of the settlement date.